Keynote presentation made at The NRF Big Show event in New York Date: January 2018 Presenter: Lee McCabe, Vice President, North America

1. Alibaba and the Future of Retail
Lee McCabe, VP/GM North America

2. China’s Consumption Growth
Compared to Other Leading Economies
Copyright © 2017 Alibaba Group. All rights reserved. 2Source: BCG: "Five Profiles That Explain China's Consumer Economy"
Consumption growth
from 2016 through 2021
2016
Consumption
USA CHINA INDIA JAPAN GERMANY UK FRANCE
0
5
15
20
15.7
6.1
2.1
3.3
2.2 1.8 1.6
2.9
1.8
0.8
0.5
0.4 0.1 0.2
12.8
4.4
1.3
2.8 1.8 1.7 1.4
Nominal Private
Consumption ($Trillions)

3. China’s Consumption Growth
Compared to Other Leading Economies
Copyright © 2017 Alibaba Group. All rights reserved. 3
6.0
1.8
CHINA GERMANY
2
4
5
7
US$trillion
Source: BCG: "Five Profiles That Explain China's Consumer Economy"
Consumption
added 2016 - 2021
Consumption 2016
1.8
4.2

4. China Dominates eCommerce
Copyright © 2017 Alibaba Group. All rights reserved. 4
By 2019 Chinese on-line shoppers will account for 27% of the world and account for 57% of sales
2019 RANK 2019
CHINA
INDIA
US
INDONESIA
JAPAN
26.7%
13.3%
9.5%
3.9%
3.0%
CHINA US UK JAPAN GERMANY
57%
54.1%
17.6%
18.3%
3.9%
4.4%
2.6%
3%
2.1% 2.4%
1
2
3
5
4
Source: Emarketer Digital Buyer Share Worldwide by Country 2015-2010. Top 25 Countries ranked
by Retail ecommerce sale worldwide 2015-2020
2019
2018
Online Shopper Share by Country Retail ecommerce Worldwide % by Country

5. By 2025 Chinese Consumers Will Represent
44% of Global Luxury Sales
Copyright © 2017 Alibaba Group. All rights reserved. 5
Source: McKinsey: "Chinese luxury consumers: More global, more demanding, still spending" (source:
https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/chinese-luxury-
consumers-more-global-more-demanding-still-spending)
By 2025, 7.5mn wealthy Chinese households are expected to spend 1000bn RMB in luxury goods
1263
1482
1679
2170
2700
12%
21%
32%
36%
44%
2008 2012 2016 2020E 2025E
Chinese
Consumers %
Other Worldwide
Consumers
+3% p.a.
16-25
+9% p.a.
16-25
Global personal luxury-goods
market evolution, billion RMB

6. Ecommerce and the Ecosystem

7. Our Platforms – Our Ecosystem – Our Business
Copyright © 2017 Alibaba Group. All rights reserved. 7
Core Commerce Mobile Media & Entertainment Local Services
Payment & Financial Services
Logistics
Marketing services
Data Management Platform
Cloud Computing

8. 488 MILLION
Active consumers
549 million mobile
mau
520 MILLION
Users
55 MILLION
Packages delivered
everyday
Processes 70% of
all China package
delivery
580 MILLION
users
Copyright © 2017 Alibaba Group. All rights reserved. 8
Commerce Payments Logistics Media
376 MILLION
Monthly active users
165 million DAU
Social
Source: Alibaba 6-K 11/2/17, AliPay website, Cainiao fact sheet 2016,, Youku Tudou website, Weibo 3Q 2017 earnings release

9. Copyright © 2017 Alibaba Group. All rights reserved. 9* As of March 2017. Forbes Top 100 Most Valuable Brands
75% of most valuable consumer brands, according to Forbes, are on Tmall
Active Big Brands + Luxury

10. Growth of the Chinese eCommerce Consumer
Copyright © 2017 Alibaba Group. All rights reserved. 10
CHINA
USA
2010
2010
140million
Online Shoppers
140million
Online Shoppers
891million
Online Shoppers
2020
270million
Online Shoppers
2020
Source: Kantar Retail Digital 3.0 Report

11. Context | Convergence | Contact

12. Context Contact

13. Uni Identity Infrastructure is
Identifiable, Analysable, Reachable
Copyright © 2017 Alibaba Group. All rights reserved. 13
Real Person Identity Full Dimension Analysis All-round Touch Points

14. Copyright © 2017 Alibaba Group. All rights reserved. 14
In the West
Merchant Services
Branding Sales
Performance
In China
Branding Sales
Performance
Fully Integrated Media and Retail Ecosystem

15. Convergence

16. What is New Retail
Experience to Consumers?
Copyright © 2017 Alibaba Group. All rights reserved. 16
Seamless On-line Off-line connection
Merchandise, e-shopping bag，
Membership, order, payment, service
C2B
Inspire Potential Needs
Scenario-fit experience

17. Alibaba’s
488 million
annual active consumers
and Suning’s
280 million
members

18. Context Contact

19. Singles Day - 11th November
Copyright © 2017 Alibaba Group. All rights reserved. 19
• 140,000 brands participated
• 225 countries & territories participated
• 60,000 international brands
• 90% sold on mobile
• A total of 812m orders were generated
2009
$7M $25.3 B
20172010
$141M
2011
$819M
2012
$3.1B
2013
$5.7B
2014
$9.3B
2015
$14.3B
2016
$17.8B

20. Global E-Commerce
Sales in 2017
Units Value
China $Bn 1,208.31
US $Bn 442.55
UK $Bn 121.36
Japan $Bn 111.33
Germany $Bn 76.47
France $Bn 49.68
South Korea $Bn 46.59
Canada $Bn 35.08
Alibaba Singles Day 2017 $Bn 25.3
Brazil $Bn 25.04
Australia $Bn 22.31
Copyright © 2017 Alibaba Group. All rights reserved. 20Source: Emarketer. Taken from Forbes article (https://www.forbes.com/sites/augustrick/2017/12/03/singles-day-has-eclipsed-cyber-monday-
and-black-friday-but-they-all-share-the-same-goal/#3057000a4fbc)
2013 2014 2015 2016 2017
0
5
10
15
20
25
30
Single’s Day Cyber Monday Black Friday
Total Retail Sales ($B)
Singles Day - 11th November

21. 168 tons of
Northwest
cherries
100, 000
iPhone X
pre-orders
in 50
minutes
100
Maseratis
in 18
seconds
350 Alfa
Romeo
cars in 33
seconds
600 tons of
Costco nuts
in 24 hrs

22. Context | Convergence | Contact

23. Thank You
lee.mccabe@alibaba-inc.com